Would-be Hynix buyer reportedly backs out

SAN FRANCISCOSouth Korea's Hyosung Corp. has dropped its bid to buy a controlling stake in Hynix Semiconductor Inc. for as much as $2.9 billion, according to a Reuters report.

Hynix' largest shareholder, Korea Exchange Bank (KEB), said in a statement it would restart the process of selling the memory chip vendor, targeting local buyers, according to the report.

Last month, KEB and other Hynix creditors announced a delay in the sale of the chip vendor to Hyosung. As reported, former bail out creditors in Hynix were seeking bids for the remaining 28.1 percent stake they still hold in the chip maker.

Observers had been skeptical about the Hyosung bid, since Hyosung is roughly the same size as Hynix sales and has no experience in semiconductors.